Reliance Communications and South Africa's MTN have agreed “broad contours” of a deal to create a global telecoms powerhouse but are still working out share swap details, a report said Monday.RCom, which has 48 million subscribers, is valued at 28 billion dollars while MTN, which has 68 million subscribers in 21 markets in Africa and the Middle East, is valued at 38 billion. Analysts expect any deal to offer a premium of over 20 percent which would value MTN at over 45 billion dollars. Under a deal, RCom would become the largest single shareholder in MTN and the South African giant would be the biggest holding company of the Indian telecoms firm, India's leading financial daily the Economic Times said. “Both parties are learnt to have agreed on the broad contours of the deal,” the newspaper said, basing its report on unidentified sources. A spokesman for Reliance Communications (RCom), India's second largest mobile firm, declined to comment on the possible tie-up, which would create an 116 million subscriber base, eclipsing most Western mobile phone businesses.Ambani wanted 66 MTN shares for 100 RCom shares while MTN was seeking 51 MTN shares for 100 Reliance Shares, the report said, adding a top RCOM team was at MTN's headquarters in Johannesburg and was due back Tuesday.But Ambani would join the MTN board as either chairman or co-chairman. MTN CEO Phuthuma Nhelco was expected to keep his current role, according to the report. […]

Sadbhav Engineering Ltd, which is into mineral prospecting and infrastructure development, has acquired a 74 percent stake in the Hong Kong-based mining company Ocean Bright Corporation Limited (OBCL), a move that gives it entry into Africa. Gujarat-headquartered Sadbhav made the acquisition through a wholly-owned subsidiary, Sadbhav Natural Resources Pvt.Ltd. OBCL, directly and through its subsidiaries, holds complete prospecting rights in three provinces in Mozambique; it can prospect for ore and copper (spread over 24,400 hectares in Tete province), limestone (over an area of similar size in Nampula), and coal (over 5,230 hectares) in Manica. “The acquisition has paved the way for us to enter mining in Mozambique,” Sadbhav chairman Vishnu Patel said. The Mozambique government is now considering a new application from OBCL for prospecting coal in Niassa province. […]

Automotive engineering major Renold Plc today said it is in talks with Indian firm LG Balakrishnan & Bros for acquiring 75 per cent stake in its industrial chain business for an undisclosed amount. In a regulatory filing made to the London Stock Exchange, the company said “.. It is in discussions to acquire a 75 per cent interest in the industrial chain business of LG Balakrishnan & Bros Ltd (LGB).” The remaining 25 per cent stake in the business would be retained by LGB, which is listed on Indian bourses, the filing added. LGB would provide an established manufacturing base and sales distribution network. “This network would enable Renold to promote its existing product range into India's rapidly growing market place as well as exploit new product, market and export opportunities,” the filing said. […]

Talks between the promoters of Indian mobile phone services firm Idea Cellular Ltd, smaller rival Spice Communications Ltd and its foreign partner Telekom Malaysia Bhd over a merger or sell-out are progressing, one person close to the situation said, even as a new suitor, Bahrain-based Bahrain Telecommunications Co. or Batelco, has entered discussions in a deal that will pare fully or in part the 40% stake held by the B.K. Modi family in Spice. “Telekom Malaysia and Idea are engaged in talks, and Spice has not got the offer yet. All the three companies are looking into their valuations post the deal. In case Telekom Malaysia and Idea strike a deal, (the promoters of) Spice will exit the mobile phone service business,” this person said, asking not to be identified. “Nothing has happened so far, an announcement will not happen before Tuesday or Wednesday.” Telekom Malaysia owns 39.3% in Spice; the rest is held by public shareholders and institutions. Yusof Annuar Yaacob, executive director and group chief financial officer of Telekom Malaysia, said on the telephone from Kuala Lumpur that he had no specific comment on the stage the talks were in. […]

Modi group, the promoter of telco Spice Communications that was mulling a stake sale from a long time, is likely to ink a deal with AV Birla group company Idea Cellular for selling its holding. After the sale of Modi group's over 40 per cent stake in Spice to Idea, the two telco might be merged, sources close to the development said. Though Idea's Managing Director Sanjeev Aga and B K Modi of Spice were tight-lipped about the development, industry sources said a deal is likely to be announced this week. Earlier, during its annual general meeting Spice Chairman B K Modi had said he was open to all kinds of proposals for stake sale. Though the exact value of the deal could not be ascertained, it is believed to be at least Rs 60 per share. […]